Spotify's Basic Plan Is Hard to Find - But Company Denies Intentionally Hiding It

Spotify's Basic Plan Is Hard to Find - But Company Denies Intentionally Hiding It

By Marcus Hartley

December 30, 2024 at 03:00 AM

Spotify's 'Basic' tier, a new unbundled subscription option, appears to be strategically hidden from new subscribers amid controversy over the platform's bundling practices.

Key findings about Spotify's Basic plan:

  • New subscribers cannot access the Basic plan; it's only available to existing subscribers
  • Current subscribers can downgrade Family and Duo Premium plans to Basic
  • Spotify claims to have notified all subscribers about the Basic option via email
  • Over 98% of Spotify's plans are now bundled offerings

The limited visibility of the Basic tier raises questions about Spotify's strategy, especially considering:

  • Bundled plans generate higher revenue
  • Bundled subscriptions reduce Spotify's royalty payment obligations
  • Recent data shows significant cost savings from bundle-focused approach

Troll statue beside red brick wall

Troll statue beside red brick wall

Industry pushback against Spotify's bundling strategy includes:

  • Legal action from the Mechanical Licensing Collective
  • Federal regulatory scrutiny
  • Opposition from the National Music Publishers' Association (NMPA)
  • Potential litigation over infringement claims

Red arrow points at Spotify graph

Red arrow points at Spotify graph

The Basic tier's existence may serve as Spotify's defense against accusations of aggressive bundling practices, allowing the company to argue it offers consumer choice while maintaining its profitable bundling strategy.

NMPA music bundling image

NMPA music bundling image

Man wearing green shirt at screen

Man wearing green shirt at screen

The tension between Spotify's business strategy and industry concerns continues to evolve, with potential legal and regulatory consequences on the horizon.

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